When it comes to the payments space, there is no other company that has a reputation as big as that of PayPal. Hence, when it emerged that the payments giant was going to be a part of the Libra Association, there was a lot of anticipation about the sort of product Libra was going to be.
However, according to the latest reports, it has emerged that PayPal is now considering pulling out of the Libra Association. The reason behind the decision is tied to the regulatory issues that have dogged Facebook’s supposed cryptocurrency over the past months.
Ever since Facebook first announced that it was going to launch its own stablecoin named Libra in 2020, there has been a lot of regulatory backlash against it. While it is true that the company has stated that it will only launch Libra once all regulatory issues are cleared, it seems to have led to doubts among partners like PayPal. Facebook is not the only company that is going to work on Libra. The tech giant has brought together a wide range of other corporate giants into the Libra Association in order to create the cryptocurrency. PayPal is one of the key members of the association at this point.
The Financial Times reported that a representative from PayPal did not attend the latest Libra Association meeting that took place on Thursday. Considering the troubles that Libra has faced over the past months, the withdrawal of one of the biggest payment companies in the world from the project is not going to be a good thing. Since Libra is going to be backed by fiat currencies, central banks have expressed fears about the crypto token destabilizing the markets.
Although the head of policy of the association, Dante Disparte, did not speak about PayPal specifically, he said that each corporation who has become part of the project must make its own assessment.